India and China have experienced divergent growth paths since 2012 with India’s trajectory trending upwards while China’s has slipped downwards. In its 13th Five Year Plan, China has sanctified the ‘new normal’ of 6.5 per cent GDP growth for the next five years. This Discussion Paper provides a thorough analysis of the the Indian and the Chinese economy, exploring the reasons behind the latter's downturn. Additionally, it also explores bilateral economic relations between India and China with trade analysis of the key sectors of Manufacturing, Infrastructure and Services sectors.